For the second successive quarter, Abu Dhabi has broken the record for the value of the emirate’s real non-oil Gross Domestic Product (GDP). In the second quarter of 2023, non-oil economic activities have increased to AED154 billion ($41.93 billion), to surpass the AED146 billion ($39.75 billion) mark set in the first quarter of the current year.
According to preliminary estimates released by the Statistics Centre – Abu Dhabi (SCAD), the value of Abu Dhabi’s real GDP in Q2 2023 reached its highest level at AED287 billion ($78.15 billion). Non-oil activities contributed 53.7 percent to the GDP.
Abu Dhabi’s economic success continues
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, said: “The continued strong performance of Abu Dhabi’s economy despite mounting challenges in the global economic landscape reaffirms the success of the emirate’s diversification strategy and adaptability to markets’ shifts.
“Our comprehensive strategies, prudent policies, countercyclical measures, and business-friendly ecosystem further enhance Abu Dhabi’s position as a rising economic powerhouse and preferred destination for talents, businesses and investments.”
The Abu Dhabi Industrial Strategy, which was launched in June last year, is accelerating the transformation of the manufacturing sector and strengthening the emirate’s position as the region’s most competitive industrial hub and playing a key role in this growth.
Abdulla Gharib Alqemzi, Acting Director General, SCAD, commented: “The quarterly GDP estimates substantiate Abu Dhabi’s progress and show that the emirate’s economy is a competitive advantage for investors. The accumulated growth that led to the increase of the total value added of the emirate’s economy to its highest level in the second quarter of 2023 at AED287 billion comes with significant contribution of the manufacturing, construction, and financial activities.”
Construction economic activity’s growth rate reached 19.1 percent year-over-year, making the highest quarterly value-added since 2014, at AED25.3 billion ($6.9 billion). Construction activities contributed 8.8 percent of Abu Dhabi’s total GDP during Q2 2023.
Quarterly growth of manufacturing activity rose by seven percent compared to the same period last year, with the sector recording its highest quarterly value-added since 2014 of AED25 billion ($6.8 billion) during Q2 2023, or 8.7 percent of total GDP.
The wholesale and retail trade activities reached their highest quarterly value since 2014 at AED16.7 billion ($4.55 billion), contributing 5.8 percent of the total GDP. These activities grew 13.4 percent year-on-year.
Both information and communications activities and public health activities also hit record highs since 2014, totaling AED8 billion ($2.18 billion) and AED4.6 billion ($1.25 billion) respectively. The quarterly growth rate of the two activities on an annual basis reached 14.5 percent and 9.8 percent, respectively.
Thanks to the financial and banking policies, the financial sector reached its highest growth rate since 2014 at 29.7 percent. The sector’s contribution escalated to over AED18 billion ($4.9 billion) for the same quarter, a five-year high.
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